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The low take-up of the rights issue by shareholders, just 8.29 per cent, has been touted as one of the worst corporate fundraising outcomes since BP attempted to raise £7bn after the stock market crash in 1987.

But did this actually come as a big surprise?

If any investor was offered a sale on goods that were actually more expensive then the wholesale price then they would be unlikely to buy them.

But given the current volatility of lender's share prices, HBoS may have already known this outcome could be a distinct possibility.

HBoS' rights issue was launched back in April when the share price sat around the 500p mark, with shareholders given the chance to snap up a share at the discounted price of 275p for every five held.

In fact, the shares fell several times below the offered discounted price before the 18 July deadline over fears of further economic doom and gloom.

Luckily for HBoS, it made a wise decision in choosing the two main underwriters, Morgan Stanley and Dresdner.

The duo succeeded in placing a further 29.5 per cent of shares. However, this still left the underwriters picking up 62 per cent, roughly £2.6bn-worth of shares.

For big investment banks this is fine in the short-term, and both companies saw sense in taking short positions in HBoS and other hedges, covering themselves for any further falls in share price.

The fact that Morgan Stanley and Dresdner were allowed to short the shares, at a time when no one knew what the outcome of the rights issue would be, also signalled that they too may have had doubts over the depth of the shareholder's pockets.

But HBoS has proved in 2008 that it is still one of the most competitive mortgage lenders in the market, having just cut the price of its lending across its five brands for the second time in seven days and the eighth time this year.

The shareholders' reluctance to take up the offer of shares was not a reflection of HBoS ability to lender or its financial stability, it was pure financial sense.

It also reflects a general sentiment in the market that all is not well yet.

While the dust may be settling on the first round of the liquidity crisis the view is there is still more upheaval to come.

And you cannot be a confident shareholder if you are not prepared to take up a share offer.

While bigger corporations may have been more willing to saddle the risk, you would have to be fairly brave in this economic climate to believe there is going to be a demonstrable increase in value in the short-term.

Of course this could have been construed as a vote of no-confidence in HBoS' ability to increase the company's value in the foreseeable future. But then again I would not be putting money on any banks or lenders to significantly increase their share price in the next year.

All eyes will now turn to Bradford & Bingley, also trying to raise £400m through a rights issue and to Alliance & Leicester who has been offered a £1.25bn takeover bid from Spanish bank Santander.

Catherine Couch is chief reporter of Mortgage Adviser, Emma Ann Hughes is away